One of the bigger items for Indigenous welfare in Western Australia in the 2013 Federal Budget is $11.8 million for the continuation of income management trials in the Kimberley and some Perth suburbs, and the expansion of the program into the Northern Goldfields' Ngaanyatjarra Lands.

Under the program, the way welfare payments can be spent is restricted for those who volunteer or are referred by a child protection or social worker. Up to 70% of welfare payments are channelled into a 'Basics Card'. It's like a bank card that works in the ATM system but funds held on the card cannot be spent on alcohol, tobacco, pornography or gambling.

With the scheme particularly targeted at Indigenous people, critics say it is paternalistic and is being rolled out in a discriminatory fashion. The Federal Government says the scheme will support people vulnerable to financial crisis.

Living in an area where the program has been in place for over three years, Halls Creek resident Millie Hills, says the scheme has had some short-term benefits with little impact on the broader problems many Aboriginal people are facing.

"I noticed that a lot of the parents were saying that 'It's good for me because I can't buy cigarettes for my family that are humbugging me to buy cigarettes.'" she says.

But Ms Hills, who works in Aboriginal health and welfare services, says the real barrier to people getting off welfare is a commitment to training local people for available jobs in Halls Creek rather than bringing in outsiders.

"We've got a lot of migrants living in town. It doesn't bother me that they are here, but why can't we have a lot of our local Aboriginal people in those positions as well?"

Meanwhile, Ms Hills says the welfare payments being made through the income management scheme are not meeting the high costs of living in the Central Kimberley.

"I've had people who were hungry because they didn't have any money in their Basics card because they've spent it all and they can't buy any more food." she says. "I think the Government can do better than that."